Federal Reserve "Shouldn't Be Intervening All The Time" In Markets, Fed President Admits

Moments ago, St. Louis Fed president James Bullard gave one of his signature yellow-backgrounded presentations to the Tennessee Bankers Association Annual Meeting taking place at the favorited by 1%-ers everywhere Breakers hotel in Palm Beach, Florida. The bulk of his presentation is the usual trite platitudes, but he did have some chose comments, such as:

BULLARD: FED SHOULDN'T BE `INTERVENING' ALL THE TIME IN MARKETS

So just intervene from 9:30 am to 4:00 pm in the US equity market? But what will those who have been screaming about rigged, manipulated, broken US equity markets rail about if the Fed isn't intervening all the time in "markets", and if some semblance of normalcy, even if highly crashy, returns?

Rhetorical questions aside, next we got this:

BULLARD: DOLLAR LOOKING GOOD AS RESERVE CURRENCY NEAR TERM

BULLARD: YUAN MAY EVENTUALLY POSE CHALLENGE AS RESERVE CURRENCY

Or, if you are a Russian company, "eventually" took place about 1 month ago.

In short, the Fed: always one step ahead of the curve.

Continuing, here is how the Fed measures, as in actually measures, the distance from the proverbial goal posts:

This formula, while idiotic, is notable because as Bullard shows, the Fed has now overshot in its rush to the Fed's "goals":

And shorter:

And as Bullard explains:

Another way to look at this data is to ask: How often has the FOMC been as far from its objectives as it is today?

The answer is about 75 percent of the time.

That is, if we do this calculation for every month of data since 1960, 75 percent of the time the FOMC was in a worse position with respect to its goals than it is today

I think the FOMC members need to see psychologists.... really... "SHOULDN'T" what the fuck does that word mean? I SHOULDN'T RAPE PEOPLE. I SHOULDN'T KILL, MURDER AND STEAL. SANTA CLAUS SHOULDN'T BE A FAIRY TALE.

Yeah, but remember what happened when they ran out of Green. "The scoops are on the way....The scoops are on the way!" I look forward to the day the Green runs out. It's the only way things will change.

How do you keep wheelbarrows full of cash from being seen in the streets and igniting panic? You change them to 1's and zero's and dump them in the stock and bond markets. Win win, except for that inflation that keeps cropping up, you know, the kind that rigged statistics can no longer hide.

The fed shouldn't be intervening AT ALL with supply/demand/fundamental price discovery mechanisms in free markets. They are supposed to be free markets, not manipulated or intervened with markets. Our global markets are in this mess because of central banks constant micro meddling and now it's become obvious continuous meddling will be needed in order to perpetuate the mess for the sake of expediency. They really screwed the pooch on this one.

I see, but what evidence is there that they are directly involved in equities? Is the machination that they purchase US Treasuries, then the recipient of the counterfeit, a member bank or fund maintained by a bank, does the Federal Reserve's bidding for them?

The shouldn't be intervening all the time because then everyone would have the same shot. They just need to do it sporadically so only the insiders have the real opportunity to win every fucking time. The markets are corrupt and the Fed is at the top of the list of "corruptors".

Macroeconomists appropriated pi and use it to represent profit or inflation in equations. Specialist cliques often corrupt the meaning of common symbols of a language in order to easily identify outsiders/laymen. In this case it also serves to borrow the credibility of the underlying symbol, e.g. the ratio's absolutely measurable quality, and apply it to those things most important to their profession which are a best nebulous and unrigorous concepts.

That is the inflation of counterfeit. Don't forget that prices also rise from the deflation of productive work. So, when 90 million drop out of the labor force, and the presumption here is that they therefore are not producing products, then this increases prices too. So much for what the Tyranny of Modern Economics falsely calls stagflation...

This is true: my wife got a letter from sears, saying they are adding balance transfer to her sears master card, at get this 25.24% apr...wtf I get .01% on savings, sears wants 25%.. plus a 5% transfer fee...tylers it's time for the revolution.....

The number one goal of the Federal Reserve is to protect the wealthy who own the banks in the Federal Reserve system, regardless of what they tell the public. If that means they will constantly manipulate every market, so be it. These people will lie to cover up what they do, no different from any NSA or CIA official. They've sworn an oath to the oligarchs which takes precedence over the constitution. Understand this is not a recent development either.

if Harry Dent is correct - it is far too late to stop "intervening" in the markets.

if the markets were allowed to trade normally, asset prices would fall 90% and there would be rampant civil unrest as bankers foreclose on the assets of a populalation no longer able to afford to pay taxes and debt service.

the Fed has no choice but to keep buying assets and intervening in the markets at an increasing and accelerating rate -

Harry Dent is a smart guy. But from my perspective his calculations are gradually becoming less and less relevant as they don't seem to reflect the influences of certain demographics like the quickly diminishing role and perceived value of the US and the FRN in international trade, and apparently completely ignores the massive juggling act required to keep the 10's of trillions of worthless FRN derivitive bagholder creditors from heading for the exit.